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GoC Short End Retraces BOE Sell-Off

CANADA
  • GoCs cheapened 2-3bps after opening on hawkish dissent at the BoE but have since retraced roughly half the move, and more so in the case of the 2Y.
  • This leaves the 2YY down -1.2bps from yesterday’s close at 1.270%, the lowest since Powell’s conference sparked what was ultimately an 8bp sell-off.
  • OIS pricing has softened, currently sitting at 26.5bps for March and between 5.5-5.75 hikes for 2022.

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